The problem these wallet providers have is not that people don’t want to use them, it’s that they can’t rely on them, writes Billy Bambrough
In terms of failed mobile wallets Barclaycard Quick Tap comes just behind O2’s dismal attempt with the O2 Wallet. On the market for a phenomenal three years the app made such a small dent in the public consciousness that I would be surprised if anyone at all will miss it when it closes in October.
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Barclaycard has said that it intends to "focus on developing other innovations that better meet our customers’ demands", following the announcement to close its Quick Tap service. What those demands actually are is something that Barclaycard is going to get all in a muddle about because these services are exactly what people want.
While Barclaycard’s contactless cards have seen good growth every year since their inception in 2007 the company has had far less success with its NFC stickers that consumers are meant to attach to devices and use just like contactless cards.
The bPay wristband set to launch in 2015 will see the company go big on wearables although the mixed reception to this market has shown this is hardly a guaranteed win.
The closure of yet another mobile payments app signals beyond doubt that customers are just plain uninterested in this kind of service at the moment, although this has not stopped firms pouring billions of dollars into researching and developing what seems to be the same thing time after time.
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By GlobalDataVery similar to the internet crash in the late nineties the mobile payments crash will come about as a result of too many great ideas and not enough infrastructure to support it.
Sure, I’d love to be able to use only my phone for payments and be able to not only leave my wallet at home, but throw it out completely but I can’t rely on either my battery or my internet connection enough to be able to do this. If I’m going to be carrying plastic anyway I’ll probably use it because it works very well.
The fundamental problem in the mobile wallet space is that companies have jumped the gun, not on what people want but on what they are able to rely on, trying to replace a always on card with a phone that is only able to work when it has battery and signal.
Barclaycard needs to reign in its spending on mobile payments, focus on plastic until the smartphone and mobile internet infrastructure is on par with what people need and spend time building trust in existing services.
